Judge Crushes State Income Tax, but AG Ferguson Says He’ll Appeal

A Douglas County Superior Court judge has shot down, rather decisively, the state's controversial income or 'capitol gains' tax, but GOP leaders say it's not over.

WA State AG Ferguson says he will appeal court ruling

According to House Republican leaders, including Ed Orcutt (Kalama-Cowlitz County), who is the House Republican Finance Leader:

"Douglas County Superior Court Judge Brian Huber ruled the capital gains legislation "is properly characterized as an income tax...rather than an excise tax as argued by the state."

Even the IRS considers capital gains as income, that's a well-known fact backed up by numerous studies, and even the IRS itself. And, income taxes are prohibited by the Washington State Constitution.

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However, Democrats, at the bidding of Gov Inslee, have tried for several legislative sessions to spin it as an excise tax. According to the taxpolicycenter.org:

"Capital gains are profits from the sale of a capital asset, such as shares of stock, a business, a parcel of land, or a work of art. Capital gains are generally included in taxable income, but in most cases, are taxed at a lower rate."

  Apparently, AG Ferguson cares more about taxing citizens than following the state Constitution?

Given that Judge Huber ruled it that way, and used rather strong language in his judgement,  it's ironic Ferguson says he will appeal.

Orcutt and other legislators say that means the next step will be the State Supreme Court, and they've never been known (in their present makeup) to adhere strictly to what the 'law' says; rather, they lean heavily on the side of Inslee and his policies.